Potential Blow to Crypto: CoreWeave Reportedly Cuts Its Valuation to $23 Billion
Another report mentions that the artificial intelligence company is also cutting the size of its IPO to $1.5 billion.
Author: Helen Brown | Edited by: Stephen Alpher Updated: 27 Mar 2025 14:01 UTC Published: 27 Mar 2025 13:53 UTC
What you need to know:
- CoreWeave is significantly reducing the size and valuation of its IPO, according to Semafor.
- The AI infrastructure company, which has close ties to Bitcoin miner Core Scientific, posted revenue of $1.9 billion last year.
- Market caution about AI costs and recent tech stock woes could contribute to a reduction in IPO volume.
CoreWeave is set to reduce the size of its initial public offering just one day before it hits the market, according to Semafor.
The AI infrastructure company was previously expected to raise $3 billion at a $30 billion valuation, but was later scaled back and the valuation cut to $23 billion.
A separate Bloomberg article states that CoreWeave now expects to raise just $1.5 billion.
CoreWeave is actively partnering with Bitcoin miner Core Scientific (CORZ), which is expected to benefit from the IPO if the results are positive and maintains high revenue growth rates over the next few years.
CORZ shares were up slightly in early U.S. trading, but have fallen sharply over the past month and for 2025 overall. AI-related tokens such as NEAR, ICP, and RENDER have modestly recovered some of their earlier losses.
CoreWeave has set a revenue target of $1.9 billion in 2024 amid growing demand for AI services. However, some believe CoreWeave's new $12 billion deal with AI giant OpenAI could have bigger implications for the company than its IPO plans.
CoreWeave's stake comes as tech stocks have lagged other market sectors since the start of the year, partly due to recurring tariffs imposed by U.S. President Donald Trump and concerns about spending by AI companies.
CoreWeave will debut on the Nasdaq on Friday, becoming the first AI company to go public. A company representative was not immediately available for comment.
